Charles River splits off and divests CDMO business

By Dani BancroftDani Bancroft16-Feb-20172017-02-16T00:00:00ZLast updated on 16-Feb-2017 at 17:20 GMT2017-02-16T17:20:26Z

Charles River Laboratories International Inc. has sold off its CDMO business QS Pharma LLC, saying the small-molecule manufacturing business was “not optimized” within the firm's portfolio.

Charles River acquired QS Pharma as part of Ohio-based WIL Research Laboratories LLC in January 2016, for a total of for $586m cash.

However, as an early-stage contract research organization (CRO), Charles River stated that QS Pharma was “not optimized within its portfolio at current scale”, in the firm’s end of year report.

Amy Cianciaruso, a spokesperson for Charles River, told Outsourcing-Pharma that Pennsylvania-based QS Pharma accounted for less than 10% of WIL Research’s total revenue.

Instead, QS Pharma was sold to the UK-based outsourcing specialist Quotient Clinical Ltd., which is looking to expand its US presence.

The value of $75m USD was generated from the sale, which Charles River said could be deployed for use in other “long-term” growth opportunities.

When asked about why Charles River wanted to acquire WIL Research, Cianciaruso explained: “WIL Research was an exceptional strategic fit for Charles River because it incorporated the key attributes we require in an acquisition: high-quality services, scientific expertise, complementary capabilities, and access to growing end markets.”